Originally written by Timothy Adler on Small Business
Bill Esterson, the shadow small business minister, spoke out of turn this week when he pledged Labour would stop the rollout of IR35 tax changes to business.
Speaking on Monday night, Esterson pledged at a small business hustings in the City of London that Labour would scrap IR35 being extended to the private sector, despite there being nothing about it in Labour’s manifesto.
“We absolutely can’t see it rolled out into the private sector the way things are at the moment,” Esterson told the hustings.
“It should never have been implemented in one go.”
Asked later to confirm if it was Labour Party policy to review IR35 and not rollout changes out to the private sector in April 2020, he tweeted: “absolutely”.
>See also: Labour small business minister: ‘Boris just says whatever pops into his head’
However, that tweet was subsequently deleted:
Esterson told Small Business that Labour policy was now to review IR35 changes before they come into effect.
IR35 will draw sole traders and freelance contractors into the tractor beam of IR35, which HMRC sees at tax avoidance when freelance contractors are effectively permanent.
Liberal Democrat deputy leader Sir Ed Davey was the big winner at the City hustings, organised